Investor Relations Presentation

December 2014

Introduction to SGL Group’s Businesses

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SGL Group in 2014 . Organization with five business units

Graphite & Carbon Electrodes ect odes (GCE)

Cathodes & Furnace Linings gs (CFL)

Graphite Specialties (GS)

Process Technology ((PT))

Carbon Fibers & Composite Co pos te Materials (CF/CM)

JVs - SGL ACF - Brembo SGL - Benteler SGL - etc

Corporate Functions & Service Centers Technology gy & Innovation (T&I) SGL Excellence (SGL X) Business Unit Aerostructures (AS, HITCO) reclassified to discontinued operations as of June 30, 2014 Page 3

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Joint Venture Partners

Reporting Segment: Performance Products (PP).

Business units

2013 Group sales*

PP sales - 2013

 Graphite p & Carbon Electrodes (GCE)  Cathodes & Furnace Linings (CFL)

Key industries served

PP 53%

Cathodes & Furnace Linings 15%

Characteristics

 Steel

 Supplying the metal industries

 Aluminum

 Leading competitive position

 Ferrous and non-ferrous metals

 Ongoing growth in BRIC  Historically high ROS & ROCE  Historically strong cash flow

Strategic priorities  Adjust infrastructure to reduced electrodes demand  Increase customer value through product quality and consistencyy  Regular shipment of graphite electrodes from Malaysian plant

* Adjusted for the reclassification of Business Unit Aerostructures to discontinued operations as of June 30, 2014 Page 4

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Graphite & Carbon Electrodes 85%

Graphite & Carbon Electrodes. Graphite p electrodes (GE) – steel p production in EAFs Worldwide steel production [in mt]  Growth in steel production f ll d b fuelled by infrastructure i f demand from emerging countries  Scrap availability limits EAF growth in emerging countries  Due to continued efficiency gains GE demand growth g g only 1 – 2% p.a.  GE critical to EAF furnace efficiency but only ~3% of steel-making steel making conversion cost

1600

Blast furnace produces primary (integrated) steel based on iron ore

1400

Electric arc furnace produces secondary (electric) steel based on scrap

1200 1000 800 600 400 200 0

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

Source: WSD, IISI, own estimate Page 5

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Graphite & Carbon Electrodes. Graphite p electrodes for electric steel production p Steelmaking in an electric arc furnace (EAF)

Graphite electrode

Section view through EAF

Graphite Electrodes F Furnace shell h ll Molten steel Rocker tilt Tilt cylinder

100 – 360 cm

Eccentric bottom tapping (EBT) 35 – 80 cm

Connecting Pin

Teaming ladle Source: steeluniversity.org Page 6

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Graphite & Carbon Electrodes. Graphite p electrode production p p process Graphite production  GE critical to EAF furnace efficiency but only ~ 3% of steelmaking conversion cost  GE is a consumable – replaced every 5 to 8h  GE usually sold mostly in annual contracts  N Needle dl coke k requirements i sourced d on b basis i of multiyear contracts

 Production process takes up to 3 months

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Graphite & Carbon Electrodes. Graphite p electrode market Capacity by competitor in 2014* – UHP / HP-quality [in tmt]

Regional demand in 2013

250 North / Middle East, Africa 9%

200 150

Americas 17%

100

Asia 51%

50 0

Europe / CIS 23%

SGL (DE)

Graftech f h Showa h Tokai k i Graphite hi (US) Denko Carbon India (JP) (JP) (IN)

HEG (IN)

SEC (JP)

Nippon i Carbon (JP)

*Russia and China: Potential UHP capacity dependent on equipment, technical capability and needle coke availability. Source: SGL Group’s own estimates (as of March 2014)

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Cathodes & Furnace Linings. Cathodes for the aluminum industryy Aluminum global production scenarios 2003 – 2020 / Above pre-crisis scenarios

80 Primary Aluminum m Production [in mio o. t]

 Aluminum demand driven by:  Population growth and urbanization  Further industrialization of BRICs  Weight / strength / cost advantages in higher energy cost environment  Cathodes essential to aluminum smelters  Existing smelters relining  Investment good (5 – 7 years lifetime)  New smelter construction leading first to project demand and long-term to higher relining demand  Smelters upgrading  Amorphous  graphitized cathodes  Few major established producers of graphitized cathodes  Cathodes represent only 2 % of production costs for 1 t aluminum

70

67 mio. t

60 50

50 mio. t

39 mio. t

40

36 mio. t

30 20 10

2003

2005

2007

2009

2011

2013 e

2015 e

2017 e

2019 e

 Solid fundamentals for aluminum production growth  Various new projects under construction and additional feasibility studies for capacity increases underway. Source: IAI, Habor, SGL Group’s own estimates, Hydro; Alcoa, CRU

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Cathodes & Furnace Linings. Cathodes for the aluminum industryy Aluminum smelter

Cathodes

30 – 70 cm 2

30 – 50 cm

3

4 1

4 100 – 380 cm

4

Special glue

Cathode blocks

Ramming pastes

Sidewall blocks Source: SGL Group

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Cathodes & Furnace Linings. Market shares in cathodes  Increasing cathode demand due to new projects.

Market shares in cathodes 2014 CIS 7%

SGL 18%

SEC 16%

Various (Chinese & Others) 41%

Carbone Savoie 18%

Source: SGL Group’s own estimates, market shares based on volume (excl. China domestic) Various (Chinese & others): various cathode producers combined in this number, none of them exceeding 5% market share Page 11

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Reporting segment: Graphite Specialties (GS). Business unit

2013 Group sales**

 Graphite Specialties (GS)*

Key industries served  Energy – Solar / Battery

GS 21%

 Semiconductor / LED  Metallurgy  Tool manufacturing  Automotive  High-temperature processes

Characteristics  Sustainable growth potential in renewable bl energies, i energy efficiency and energy storage  Broadest product portfolio  Global footprint  C-parts supplier to high tech investment goods industry Page 12

Strategic priorities  Maintain leading position in all core product d t ttechnologies h l i  Capture opportunities to disproportionally participate in market recovery  Improve business position in Asia

* Former Business Unit New Markets integrated into Business Unit GS as of May 1, 2013** ** Adjusted for the reclassification of Business Unit Aerostructures to discontinued operations as of June 30, 2014

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Graphite Specialties. Best solutions for our customers … ... in the PV / Semiconductor Industry

... in the LED Industry

Iso susceptor, heating elements, heat shields / insulation (soft- and rigid Felt)

Reinforced graphite g sheet sealing

Mono crystalline silicon ingot

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Flange sealed by a gasket

MOCVD reactor

Iso graphite heating element

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... in the Chemical and Automotive Industry

SiC coated iso graphite ssusceptor scepto

Flexible graphite foil

Graphite Specialties. The reliable material supplier pp

Full integration to ensure consistent quality

    

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Feedstock Machining Purification Impregnation & coating Global production: America, Asia / Pacific and Europe

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Most comprehensive portfolio in the industry

Isostatic Extruded Vibro molded Die molded Expanded Carbon fiber reinforced carbon  Soft & rigid felt  SiC coating      

Partnering with customers from >35 industries

 Polysilicon, photovoltaic & semiconductor  LED & sapphire  Heat treatment  Sealings & gaskets  EDM  Glass & refractories  Mechanical engineering

Graphite Specialties. Specialty p yg graphites p required q where other materials fail Main properties of carbon and graphite materials t i l

Mechanical h l strength Thermal shock resistance

Modifiable to suit requirements

Corrosion resistance

Purity Electrical and thermal conductivity Page 15

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Resistance to high temperatures

Graphite Specialties. Fine grain graphite production is complex p and requires q up p to six months Coke & g graphite p

Binder p pitch

Grinding

Mixing Shaping 8001,200°C

Pitch impregnating 2.500-3,000°C

Extruding, E di vibration ib i / di die molding, ldi isostatic pressing

4-5 4 5 months

Carbonizing Graphitizing Finishing

Machining, purifying, coating

2-4 weeks k

Tailor made product Source: GS Production Page 16

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Graphite Specialties. Enabling g innovation Examples:  Carbon for anode material for lithium-ion batteries

Target approx. 1/3 of sales based on new products introduced over the last 4 years

 New application in electronics industry  Thermal management solutions for electronic applications  Expanded graphite for environmental needs and thermal management (JV between SGL Group and Lindner Group for Graphite-based “Green” Air Conditioning)  Advanced Silicon Carbide coated carriers for LED

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new

established

Graphite Specialties. Major j customer industries and market shares 2013 % of total GS sales 2013

Global market share 2013

Energy: Batteries & Nuclear

20%

35%

Energy: Solar (including Polysilicon)

11%

15%

Semiconductor (incl (incl. LED)

14%

15%

Chemicals

11%

35%

Tool manufacturing

11%

10%

Metallurgical applications

10%

25%

Automotive & Transportation

10%

15%

High-temperature High temperature processes

4%

15%

Other industrial applications

9%

Source: SGL Group’s own estimates

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Reporting segment: Carbon Fibers & Materials (CFM). Business units*  Carbon Fibers / Composite Materials  51% SGL ACF (JVs with BMW)

2013 Group sales**

CFM sales – 2013 SGL ACF 8%

CFM 18%

Carbon Fibers / Composite Materials 92%

Key industries served  Automotive  Energy

Characteristics

Strategic priorities

 New applications in automotive, energy, industrial i d ti l

 Become supplier of choice for our focus f markets k t

 Medical Technology

 High earnings improvement potential

 Construction

 Complete value chain in house

 Optimize carbon fiber and composite capacities along the value chain

 Pressure P Vessels V l

 Only EU carbon fiber company

 Industrial  Recreation

 Convert Fisipe acrylic fiber lines into PAN precursor production

* Former Business Unit Rotor Blades sold as of December 31, 2013 **Adjusted for the reclassification of Business Unit Aerostructures to discontinued operations as of June 30, 2014 Page 19

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Carbon Fibers / Composite Materials. Carbon fiber demand g growth delayed y but all g growth drivers intact CF market forecast [January 2014; in thousand mt p.a.]

30

34

2010

2011

39

41

2012

2013

49

2014

55

2015

63

2016

71

2017

80

2018

Source: SGL Group market research Page 20

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Carbon Fibers / Composite Materials. Carbon fiber capacity p y Capacity [in mt]

Name plate capacities* carbon fiber (excl. oxidized fiber)

35000

 LT = Low tow fiber 1 – 24k

30000

 HT = High tow fiber 50 – 300k

25000

* Actual production tends to be 20 – 30% below name plate capacity

20000 15000 10000 5000 0

Toray** (JP)

Toho / Fortafil (JP)

MRC (JP)

SGL Group (DE)

Formosa Plastic (TW)

Hexcel (US)

Aksa (TR)

Cytec (US)

Product

LT/HT

LT

LT/HT

HT

LT

LT

LT

LT

Markets

Aero / Ind.

Aero / Ind.

Ind.

Ind.

Ind.

Aero / Ind.

Ind.

Aero / Ind.

** Including Zoltek Page 21

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Source: SGL Group’s own estimates, company websites (as of January 2014)

Carbon Fibers / Composite Materials. Composite p Materials  Carbon fibers can be woven or braided and are often impregnated with resin before component production

 We aim to have a broad range of technologies for prepreging / preforming

SGL Kümpers

 Impregnation (e.g. prepregs for wind turbine blades or aircraft parts)  SGL epo  Weaving (e.g. sporting goods, automotive, medical industry)  Preforms (e.g. automotive industry)  Braiding (e.g. automotive industry)  SGL Kümpers

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SGL epo

Carbon Fibers / Composite Materials. JVs with BMW, Mitsubishi exclusivelyy for BMW’s demand  Milestone in serial application of carbon fibers in automotive industry – market launch of first serially produced car (BMW i3) with a CFRP passenger p g cell in November 2013; market launch of BMW i8 in Mayy 2014  SGL Automotive Carbon Fibers LLC, Moses Lake (USA): 51/49 JV between SGL and BMW Group producing carbon fibers exclusively for BMW’s demand  SGL Automotive Carbon Fibers, Wackersdorf (Germany): 51/49 JV between SGL and BMW Group producing composite materials (fabrics) in Wackersdorf (Germany) based on carbon fibers from Moses Lake (USA)  These fabrics are sold to BMW who manufactures automotive parts and assembles the BMW i3 and i8. Extension of usage of carbon fibers to other BMW models intended  October O t b 2009: 2009 €90 million illi combined bi d investment i t t volume l for f initial i iti l capacity it Source: BMW Group of 3kt carbon fiber and corresponding fabric capacity  May 2014: further combined investment of approx. €145 million to triple carbon fiber capacities to 9kt  BMW guarantees certain minimum purchasing volumes at contractually agreed conditions and provides debt financing  Precursor supply safeguarded by MRC – SGL Precursor Co. Ltd., Otake (Japan): 33/67 JV between SGL Group and Mitsubishi Rayon Page 23

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Equity accounted JVs in automotive. Complement p our carbon fiber product p offering g  Benteler-SGL: / JV between SGL Group p and Benteler AG to develop p composite p  50/50 based automotive components  Leading position in developing structural automotive parts and modern, automated production technologies  Successful manufacturing of prototype parts for the BMW i projects  Set-up of the first high volume composite components production plant  Brembo-SGL:  50/50 JV between SGL Group and Brembo SPA for carbon ceramic based automotive brakes  Leading ead g g global oba pos position, t o , ssupplying pp y g most ost o of tthe e high-end g e d ca car makers, a e s, with t production sites in Germany and Italy  SGL Group’s strategic objectives in automotive:  Drive the metal substitution process in automotive to become a major automotive parts supplier  Ensure that SGL Group’s materials are at the forefront in the automotive industry Page 24

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Carbon Fibers / Composite Materials. SGL Group p onlyy integrated g European p carbon fiber producer p Carbon Fibers & Composite Materials

Composite Components*/** Refocused on materials & automotive / other industrial components

Raw Material

Carbon Fiber

Composite Materials

PAN Precursor

Carbon Fiber

Prepreg Preform

 Fisipe (100%)  MSP: JV with Mitsubishi Rayon (33%)

 Prod. Capacity ~ 4kt in UK ~ 2kt in USA  SGL-ACF: JV with BMW (51%) ~ 3kt k in USA*** ***

 SGL epo (100%)  SGL Kümpers (51%)  SGL-ACF: JV with BMW (51%)

* Former Business Unit Rotor Blades sold as of December 31, 2013 ** Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014 *** Tripling of capacity to 9kt announced on May 9, 2014 Page 25

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Automotive & other industrial  Benteler SGL (50%)  Brembo SGL Carbon Ceramic Brakes (50%)

Carbon Fibers & Materials & Automotive Components. Best solutions for our customers

Materials

Automotive components

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Carbon fiber

Fabrics

Lightweight automotive t ti parts

B k discs Brake di

Reporting Segment: Corporate & Others (C&O).

2013 Group sales*

C&O sales – 2013* C&O 8%

Corporate C 5% Process Techno Technology 95%

Business units + corporate  Process Technology (PT)

Key industries served  Chemicals

plus

 Pharmaceuticals

Corporate T&I

 Environmental

Corporate Costs

*Adjusted for Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014 Page 27

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Process Technology. Process solution provider for chemical and related industries Product portfolio Systems  Syntheses  Distillation, purification, concentration, dilution  Absorption, desorption  Reactors R t & converters t  Steel pickling Equipment  Heat exchangers  Reactors and internals  Quenchers and vessels  Pumps and piping  Accessories After sales services  Spare parts  Maintenance / Repairs  Training Page 28

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Core industries served      

Chemicals Pharma Metals & Mining Energy Solar E i Environmental t l

Core applications         

Hydrochloric acid (HCl) Ph Phosphoric h i acid id (H3PO4) Sulfuric acid (H2SO4) Hydrofluoric acid (HF) Oxidizing acids Isocyanates y Epichlorohydrine (EPC) Vinyl chloride (VCM) Polysilicon

Process Technology. Business model and 3D g growth strategy gy Engineered process solutions lead to high value leverage on graphite Graphite

Idea

SiC PTFE

Engineering

Ex. Metals

Production

Process Solutions: Systems

V l chain Value h i Process Solutions: Equipment q p

1st Dimension: Regional roll-out 3D growth strategy – engine for sustainable profitable growth 2nd Dimension: New products Page 29

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Leading to higher sales, ROS and ROCE 3rd Dimension: New industries

SGL Excellence. Enables p productivityy and g growth SGL Excellence    

Started in 2002 Core element of the Company mission Ongoing and Company wide program Our philosophy of doing business

SIX SIGMA + LEAN

 Our core methodology  Focuses on:  Customer value  Measurable objectives and results

 Applies to every function in our Company  Empowers our employees with skills and tools:  > 4,000 4 000 SIX SIGMA trained employees  > 350 active Green Belts  > 120 Black Belts Page 30

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Innovation Excellence

Operational Excellence

Commercial Excellence

People Excellence

SGL Excellence savings. Since 2002 continuous cost reduction of €310 million in total Annual Net Savings (€m)

55

21

2002 Page 31

2003

16

15

2004

2005

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25

27

28

2006

2007

2008

23

23

24

26

27

2009

2010

2011

2012

2013

SGL2015 cost savings program. Three pillars for improving p g profitability p y and market positioning p g Organizational Restructuring g

Asset Restructuring g

Portfolio Restructuring g

Simplify processes and streamline management structures t t

Adjust asset base to changes in market demand

Carbon fiber business: focus on materials competence

 Review all workstreams and identify redundancies  Adjust j organizations g and Corporate and Service Functions  Reduce personnel costs and indirect spend

 Optimize global production network, relocate production p capacity p y utilization  Improve  Reduce fix costs  Use synergies between the Business Units  Consolidate sites

 Analyze our business portfolio

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 Concentrate portfolio on core activities act t es  Investigate options for businesses

SGL2015. Organizational restructuring A Reducing personnel costs by streamlining corporate and service functions Board of Management

-40%

 Affecting approximately 300 jobs

Upper Management

-22%

 Primarily at management levels

Middle Management

14% -14%

Employees

-14%

B Substantial S b i l reduction d i in i indirect i di spend d 1

Cost management

2

Review of purchasing structures and processes

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€ 30 million savings

Cost reduction through adjusted guidelines

3

Transparent monitoring

4

SGL2015. Asset restructuring Adjusting production network to changed demand and market environment  Closure of Canadian facility in Lachute completed end Q1 Q1-2014 2014  Reduced 30,000 t graphite electrode capacity  110 jobs cut

 Closure of Italian facility in Narni in progress  Production discontinued in H2-2014  Reduced 30,000 t graphite electrode capacity  Social plan for 120 employees targeted

 Further projects to optimize production structure

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SGL2015. Portfolio restructuring Focusing our carbon fiber business on core competencies  Disposal of rotor blade activities  Sale of all shares in SGL Rotec to a strategic investor as per December 31, 2013  Strong cooperation in carbon and glass material supply to continue

 Decision to sell BU Aerostructures in Q2/2014, selling process initiated  Reclassification of BU AS to discontinued operations as of June 30, 2014

 Next steps  Focus on core competence material development and production

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SGL2015. Schedule for implementation  Implementation of organizational restructuring project by end 2014 projects j running g simultaneouslyy  Other SGL2015 p 2013

2014

2015

SGL2015 Organizationalrestructuring

Analysis

Implementation

Asset & portfolio restructuring

Ongoing projects

Ongoing projects (responsibility lies with Business Units)

Continuous improvements

SGL Excellence

Continuous communication Page 36

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Technology & Innovation. Foundation for p profitable g growth Technology & Innovation: SGL Group’s centralized R&D organization  Market driven R&D ensures best-in-class support for current and future customers.  Industry networks with suppliers and customers are an essential part of our development strategy thus ensuring close contacts to our markets.  Global networks with leading universities cover the basic research.  M Material, t i l process and d application li ti know-how k h is i the th platform l tf for f our development d l t clusters: l t synthetic graphite, carbon fibers and composites, energy systems, and ceramic fibers & composites.  Strategic IP management safeguards our products and processes and is a driver of our long term market success.

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Technology & Innovation. Foundation for p profitable g growth Activity areas of T&I 2014 Raw materials & synthetic graphite development for b i industries basic i d t i ttargeting g ti g  Reduction of graphite electrode consumption in EAF by optimization of raw materials, oxidation resistance and GE-joint.  Increase energy efficiency of aluminum production process by improved cathode recipes and advantageous cathode designs.  Elongate lifetime of furnace linings by improved microporous carbon-ceramic recipes and advanced lining bloc designs. Strengthen Carbon Fiber based value chain  Operation of carbon fiber Pilot Line and improvement of carbon fiber production processes.  Development of new carbon fiber grades based on own precursor precursor.  Development of a new composite material system based on Thermoplastic matrix. Page 38

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Energy systems  Low L costt graphite hit b based d anode d materials t i l ffor Li Li-ion i batteries.  New carbon & graphite based composite anode materials with enhanced energy density for 3rd generation Li-ion batteries.  Development of carbon felt with enhanced surface characteristics and improved electrochemical behavior for stationary energy storage systems such as redox flow batteries.  Advanced gas diffusion layers for PEM fuel cells for automotive and stationary applications. Improved Ceramic Materials  Development of new C/SiC materials and manufacturing methods for complex shaped ceramic structures structures.  Development of high-temperature stable SiC fiber.

Strategic realignment and capital increase

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New management implementing tighter financial discipline. p Changing key performance indicator from ROS to ROCE Introducing stronger financial and capital deployment discipline, particularly with respect to capex and potential mergers/acquisitions Will also be g guiding g principle p p with regard g to portfolio p decisions in strategic g realignment Cash will only be invested with minimum ROCE expectations: businesses have to “earn

the right to grow grow”

ROCE orientation reflected in long term incentive scheme of Board of Management – to be cascaded down to next management layers

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Right size. Improve performance. Enhance shareholder return. ROCE



Combination of capital increase and proceeds from right-sizing the business will strongly delever the company and thus improve leverage ratios



Stabilize financial position by achieving positive net result and free cash flow



Healthy balance sheet and stable earnings provide flexibility to execute on strategic repositioning



Capital discipline, defined by minimum ROCE of 15%, is new overriding guiding principle and management culture for strategic repositioning and future investments



Generate accretive returns or distribute cash to shareholders to enhance shareholder return

Enhance shareholder return

3

ROCE hurdle rate

15%

2 Improve performance

1 Right size

Invested capital

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1

Right size. Relentless restructuring of underperforming activities Rationale 

Closure of Lachute (Canada): 30kt graphite electrode capacity/110 employees

− Optimize global production network (relocation, consolidation, closures)



Closure of Narni (Italy): 30kt graphite electrode capacity/social plan for 120 employees targeted

− Improve capacity utilization and fixed cost base



Streamlining production facilities in GS



Cost competitive assets only



Further measures under evaluation and subject to price/demand development



Focus on materials competence and strengths in all businesses



Disposal of rotor blade activities (Rotec)

g g review of portfolio p considering g target g ROCE − Ongoing



HITCO sale initiated – reclassified to discontinued

− Assessment of strategic options for activities which do not reach mid to long term targets



Further selected disposals could follow as a result of strategic review



Asset restructuring

Portfolio restructuring t t i g

Progress

Adjust asset base to changes in market demand

SGL is progressing well with focusing its business and asset portfolio resulting in a stronger, more profitable company

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(

)

(

)

2

Improve performance. SGL 2015 efficiency improvements well ahead of plan Measures

Exp. Savings

Progress as of June 30, 2014

SGL Excellence 2013 & other th savings i

  

SGL X g Raw material cost savings Energy cost savings

~ €55m

SGL Excellence 2014 & operational improvements

  

SGL X Raw material cost savings Energy cost savings

~ €35m

~ 70%

Organisational restructuring

 

Headcount reduction Indirect spend

~ €60m

~ 70%

Divestments



SGL Rotec, HITCO

~ €15m

~ 50%

Asset restructuring

 

Closure GE site in Lachute, Canada Closure GE site in Narni, Italy

~ €50m

~ 40%

~ 100%

Targeted cost savings of more than €200 million exceeding initial objective of €150 million

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3

Enhance shareholder return. Stringent resource allocation Performance Products (PP) Selective growth investments Structural growth from existing assets

Cyclical recovery

Graphite Specialties (GS)

Carbon Fibers & Materials (CFM)



Investments est e ts in graphite g ap te anode a ode materials production for Li-Ion batteries



Expansion pa s o SG SGL ACF C ((BMW JV) J ) investment - capacity increase to 9,000t p.a.

Long-term market potential from high Chinese scrap availability increasing steel production in electric arc furnaces (EAF)



New graphite based applications resulting from new technologies



Ramp up of BMW i3 / i8 production



Significant growth in automotive and i d t i l carbon industrial b composite it use



Own low cost and high quality precursor (Fisipe)



Well positioned to benefit from potential price and volume recovery in graphite electrodes





Supported by cost and capacity adjustments





Structural St t l growth g th iin selective l ti end d markets significantly above GDP Cyclically depressed markets to potentially recover − Industrial I d ti l − Solar − Semiconductor

O l li Only limited it d investments i t t required i d for f further f th growth th

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Divisional strategy Performance Products (PP). Short term turnaround byy improving p g cost position p further 2013 Group sales

€1,477m

Strategy & Outlook

PP 53%



Key management focus is on turnaround in GE profitability



Significant restructuring measures implemented in context of SGL 2015

Growth opportunities Worldwide steel production (in mt) 1.600

Blast furnace

1.400 1.200

“Wave of scrap” expected in medium term

Electric arc furnace

1.000



Well positioned for cyclical recovery with electrode plants in all key regions

800 600 400 200 0

PP Business Units Graphite & Carbon Electrodes (85%)

Cathodes & Furnace Linings (15%)



Price stabilization in last months



Low profitability in GE and needle coke i d industry limits li i further f h downside d id



Expected near term margin improvement – even in flat pricing environment – due to -

Graphite G hit electrodes l t d ffor electric steel production

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Cathodes C th d ffor aluminum l i production

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-

Ramp up of low cost Malaysian facility

1985

1995

2005

2015

Source: WSD, IISI, own estimate



Future high Chinese scrap steel availability to trigger strong increase in EAF production mid to long term



Resulting in substantial GE demand upside



Well positioned with new facility in Malaysia l

Cost benefits of capacity closures Additional SGL 2015 cost savings

1975

Divisional strategy Graphite Specialties (GS). Strong g innovation track record and growth g prospects p p 2013 Group sales 

Capitalize on strong market position, diversified customer and materials base



Giving us sufficient base load operations to sustainably maintain adequate margins in a high fixed cost environment



Continue to exploit innovation potential as demonstrated by ~30% revenue share with new products** products

€1,477m

GS 21%

Key end markets % of GS 2013 sales

Market share*

Batteries & Nuclear

20%

35%

Semiconductor & LED

14%

15%

Solar

11%

15%

Chemicals

11%

35%

* Source: SGL estimates ** Less than four years old Page 46

| Investor Relations Presentation

Growth opportunities

Strategy & Outlook



Potential upside from big ticket orders



Overcapacity situation in polysilicon applications to be addressed

e.g. graphite anode materials for Li Li-Ion Ion batteries 10,000-15,000g of graphite

10 15 10-15g of graphite

Laptop Battery

Auto Battery Source: SGL



Successful track record in terms of both growth and profitability



Significant growth potential from anode materials for Li-Ion batteries



Structural growth opportunities support growth track and increase share of higher margin businesses, e.g.



More widespread use (e.g. automotive - Tesla “giga factory”)

-

Graphite for Li-Ion batteries

-

High temperature applications

Divisional strategy Carbon Fibers & Materials (CFM). Command entire value chain in industrial carbon fibers 2013 Group sales 

CFM 18%

€1,477m

Value chain Raw Material (Precursor)

Fisipe

Carbon Fiber

SGL ACF

Composite Materials

SGL ACF, SGL Kümpers, SGL epo

Reference plants / JV’s

Page 47



Components

Materials

| Investor Relations Presentation

Path to profitability is to command entire value chain -

Conversion of Fisipe lines to precursor for carbon fibers

-

Focus on core competencies – wind, automotive and potentially other industrial

-

HITCO sale initiated as lacking value chain for aerospace carbon fibers

e.g. carbon composite use in automotive c. 23,000t CF

c. 2,500t CF

Ongoing review of CFM portfolio under ROCE target criteria



BMW JV – best-in class benchmark supporting financial targets



Clear financial objectives to be achieved

Composite Components

Benteler SGL, Brembo SGL

Growth opportunities

Strategy & Outlook

-

Sustainable break break-even even in the short shortterm

-

Achieving ROCE targets in the mid-term

2013

2020 Source: Carbon Composites; AVK



Significant long-term long term growth potential from increasing use of carbon composites in automotive -

Exclusive supplier in specific automotive products & applications

-

Involved in the two largest projects globally (BMW, Audi MSS)

How we intend to transform SGL Group. Guided by y clearlyy defined targets g Create flexibility for restructuring and repositioning iti i with ith capital increase and disposal proceeds (HITCO, etc.)

Gearing ~ 0.5 Equity ratio > 30%

* Excluding disposal proceeds ** ROCE defined as EBITDA/Capital employed

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Stop loss makers and cash drainers by restructuring t t i or disposing

N d Net debt/EBITDA b /EBITDA < 2.5 Positive net result

Capex for selective growth opportunities subject bj t tto minimum i i hurdle rates

Positive free cash flow*

Return on capital is key management principle i i l ffor strategic t t i realignment and future investment

ROCE ≥ 15%**

Creating a sustainable, enabling capital structure for strategic g realignment g with improved p p profitability. y €267m capital increase* increase Strengthened financial position  Gearing reduced to ~ 0.46**  Equity ratio ~ 34%**

Enable strategic realignment  Flexibility for portfolio and asset adjustments  Help finance necessary restructuring measures  Mid to long term flexibility for focused investments or dividends

Management and core shareholder commitment  Core shareholders (SKion, BMW, VW): Full pro-rata participation in the capital increase  Members of the Management Board: Combined investment into SGL shares totaling more than 50% of the aggregate yearly base salary

Proceeds will be used to strengthen capital structure and improve leverage ratios, for debt repayment*** and for creating a foundation for enhanced profitability * Gross proceeds ** Source: Based on financial data as of August 31, 2014 and assuming net proceeds from the capital increase of €261.4m *** Approximately €26.9m of the net offering proceeds will be used to repay MYR 112m of the HSBC Loans to SGL CARBON Sdn, Bhd (Malaysia), plus accrued interest, to HSBC Bank Malaysia Berhad on or before December 31, 2014. The remaining net offering proceeds in amount of €234.5m will be earmarked for future debt repayments and the other purposes as outlined above Page 49

| Investor Relations Presentation

Latest Financials 9M/2014

Page 50

| Investor Relations Presentation

9M/2014. Results for Performance Products (PP) impacted p byy price p decline in g graphite p electrodes in € million Sales revenue EBITDA before b f non-recurring i charges* h * EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT

9M/2014 428.8 45 7 45.7 16.2 3.8 9.7

9M/2013 595.9 94 3 94.3 63.8 10.7 38.9

 Sales revenue (-28 %, currency adjusted -27%) strongly impacted by price decline in graphite electrodes  Recurring EBIT declined by 75% mainly due to lower selling prices in graphite electrodes and cathodes  However, quarter-on-quarter, EBIT shows improvement  giving evidence to price stabilization in graphite electrodes  resulting from better volumes and lower costs  Closure of graphite electrode plant in Lachute (Canada) completed at the end of Q1/2014. GE production of Narni (Italy) plant phased out during H1/2014 and now terminated  SGL2015 savings €37.8 million, thereof €9.9 million from SGL Excellence * Non-recurring charges of €6.5 million in 9M/2014 and €24.9 million in 9M/2013 Page 51

| Investor Relations Presentation

9M/2014. Results for Graphite Specialties (GS) reflect improving p g order intake and big g ticket order in € million Sales revenue EBITDA before b f non-recurring i charges* h * EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT

9M/2014 265.3 43 2 43.2 29.1 11.0 28.7

9M/2013 222.4 26 4 26.4 14.6 6.6 14.6

 Sales revenue up 19% (currency adjusted 23%)  Mainly driven by big ticket order in H1/2014 and continued strong demand for anode materials for Li-ionbatteries. Order intake in remaining businesses showing signs of stabilization to slight volume improvements  Recurring g EBIT doubled ((+99%)) due to  improved order situation leading to higher utilization rates, particularly in H1  SGL2015 savings €11.5 million, thereof €6.3 million from SGL Excellence

* Non-recurring charges of €0.4 million in 9M/2014 Page 52

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9M/2014. Results for Carbon Fibers & Materials (CFM) reflect acceleration expansion p at SGL ACF in € million Sales revenue EBITDA before b f non-recurring i charges* h * EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT

9M/2014 213.5 -8.4 84 -18.1 -8.5 -18.5

9M/2013** 183.2 -11.4 11 4 -21.1 -11.5 -62.7

 Sales revenue increased by 17 %, currency adjusted 16 % due to  Significantly increased sales contributions from our consolidated joint venture with BMW Group (51% share).  CF/CM benefited from strong demand from the wind energy sector during H1 /2014  Recurring EBIT increased by 14% due to  Operating loss at CF/CM halved due to some recovery in demand. However, earnings situation in CF/CM still impacted by global overcapacities in carbon fiber production.  Partially offset by higher ramp-up costs for tripling of carbon fiber capacities to 9kt until end of 2015 in our joint venture with BMW Group  SGL2015 savings €2.2 million, thereof €1.5 million from SGL Excellence * Non-recurring charges of €0.4 million in 9M/2014 and €41.6 million in 9M/2013 ** BaFin corrections are reflected in the financial statements as at September 30, 2014. All comparative figures for 2013 are restated. Page 53

| Investor Relations Presentation

9M/2014. Results for Corporate & Others impacted byy lower contributions from PT in € million Sales revenue EBITDA before b f non-recurring i charges* h * EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT

9M/2014 79.9 -17.4 17 4 -24.2 -30.3 -41.3

9M/2013** 94.7 -15.1 15 1 -21.9 -23.1 -25.2

 Sales revenue declined by 16 %, currency adjusted -15 % due to  Lower sales contributions from the BU Process Technology (PT). In the prior year, PT benefited from the execution of a big ticket order in China.  Recurring EBIT decreased by 11% due to  Lower profit contributions from PT as planned  SGL2015 savings €9.7 million, thereof €1.6 million from SGL Excellence

*Non-recurring charges of €17.1 million in 9M/2014 and €3.3 million in 9M/2013 ** BaFin corrections are reflected in the financial statements as at September 30, 2014. All comparative figures for 2013 are restated. Page 54

| Investor Relations Presentation

9M/2014. Results for the Group marked by price decline in g graphite p electrodes Continuing business in € million Sales revenue EBITDA before b f non-recurring i charges h EBIT before non-recurring charges Non-recurring charges EBIT Results from At-Equity accounted investments Net financing result Result before tax Consolidated net result attributable to the shareholders of the parent company* EPS, basic and diluted (in €)      

9M/2014 987.5 63 1 63.1 3.0 -24.4 -21.4 -3.4 -31.9 -56.7 -91.5 -0.94

9M/2013** 1,096.2 94 2 94.2 35.4 -69.8 -34.4 -8.1 -38.4 -80.9 -197.2 -2.21

* Including result from discontinued operations Sales revenue -10 %, currency adjusted - 8%, mainly due to lower contributions from PP EBIT and EBITDA significantly decreased mainly due to lower prices in PP Cost savings of €61.2 million from SGL2015 in 9M/2014, of which €19.3 million attributable to SGL Excellence Significant improvement in result from investments accounted for At-Equity mainly due to SGL-Brembo Net financing result reflects a €9.6 million gain from the imputed interest component of the 2009/2016 convertible More than proportional improvement in net result due to lower tax expenses, as prior year was impacted by extraordinary tax expenses***

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** BaFin corrections are reflected in the financial statements as at September 30, 2014. All comparative figures for 2013 are restated. *** relating to a write-down on deferred tax assets and provisions for ongoing tax audits

9M/2014. Stable Balance Sheet. Negative free cash flow as anticipated p in € million

30.09.2014

31.12.2013**

Total assets

2,066.1

2,059.1

25.2

29.5

Total liquidity

139.7

235.1

Net financial debt

628.1

491.1

1 21 1.21

0 81 0.81

Equity ratio (in %)

Gearing (net debt/equity) Continuing business in € million

9M/2014

Cash flow from operating activities

-1.5

82.7

Capital expenditures in property, plant and equipment and intangible assets

-93.7

-70.9

- thereof SGL ACF

-54.2

-14.7

- thereof SGL Group excluding SGL ACF

-39.5

-56.2

-4.3

-1.6

-99.5 99 5

10 2 10.2

Cash used in other investing activities* F Free cash h flow fl

9M/2013**

* Payments for capital contributions in investments accounted for At-Equity and other financial assets, payments for the acquisition of subsidiaries, proceeds from sale of intangible assets and property, plant and equipment. ** BaFin corrections are reflected in the financial statements as at September 30, 2014. All comparative figures for 2013 are restated. Page 56

| Investor Relations Presentation

9M/2014. Balance Sheet reflecting the impact of the capital p increase € million Total assets

Capital increase

30.09.2014 (adjusted)

2 066 1 2,066.1

261 4 261.4

2 327 5 2,327.5

139.7

261.4

401.1

519.7

261.4

781.1

- thereof issued capital

182.3

51.7

234.0

- thereof capital reserves

703.5

209.7

913.2

25.2%

-

33.6%

628.1

-261.4

366.7

1.21

-

0.47

- thereof liquidity Equity attributable to the shareholders of the parent company

Equity ratio1) Net financial debt2) Gearing3) 1) 2) 3)

30.09.2014 (actual)

Equity attributable to the shareholders of the parent company to total assets Interest bearing loans at nominal value less liquidity Net financial debt to equity attributable to the shareholders of the parent company

Page 57

| Investor Relations Presentation

Solidly financed . Capital increase in October 2014 restores balance sheet metrics SGL Group successfully prolonged p g maturityy p profile in December 2013

Supported by previously issued debt instruments (June 2009 and April 2012)

SGL Group has solid balance sheet ratios and liquidity post the October 2014 capital increase

 €250 million Corporate Bond at 4.875% (maturity 2021)  €200 million ll credit d facility, f l undrawn d (maturity 2017)  €134.7 million* Convertible Bond at 3.5%, adjusted conversion price of €27.2959 €27 2959 (maturity 2016) (originally €190 million prior to conversion)  €240 million Convertible Bond at 2.75%, adjusted conversion price of €40.9598 (maturity 2018)  Equity ratio:

34%**

 Gearing

0.47**

 Total liquidity:

€401 million** million

Solid despite temporary earnings deterioration Page 58

| Investor Relations Presentation

** as of September 30, 2014, adjusted to include the proceeds of the October 2014 capital increase * as of October 30, 2014

Outlook

Page 59

| Investor Relations Presentation

Outlook 2014. Improvement in smaller businesses will be more than offset byy g graphite p electrode development p  Performance Products (PP): Significantly lower sales and EBIT compared to FY2013 expected due to lower graphite electrode prices. Prices stabilized on low levels  Graphite Specialties (GS): Significant increase in sales and EBIT compared to FY2013 due to big ticket order from the electronics industry, strong demand from Li-ionbattery customers and a general, albeit slow, recovery of major end markets. H2/2014 expected t d below b l H1/2014  Carbon Fiber Materials (CFM): Significant increase in sales and a slight improvement of EBIT due to an improved demand from wind energy customers (CF/CM) and BMW’s higher demand for carbon fibers and fabrics (SGL ACF)  Corporate & Others (C&O): Lower sales but stable EBIT expected compared to FY2013 mainly due to non-recurrence of big ticket order in PT; EBIT margins in PT remain double digit. digit Lower planned profit contributions from PT compensated by significant improvement in Corporate costs as a result of implemented SGL2015 measures Page 60

| Investor Relations Presentation

Outlook 2014. Full year guidance 2014 confirmed as announced in March 2014  Mainly due to PP, full year Group Sales* expected to decline compared to FY2013 similar to the decline after 9M/2014  Group recurring EBIT: anticipated to be down significantly compared to FY2013. EBIT in Q4/2014 expected to be below Q3/2014, but above Q4/2013  Full year SGL2015 savings now expected to slightly exceed the €69 million achieved in 2013  Anticipating mid double digit restructuring expenses now with higher SGL2015 savings target of more than €200 million by end 2015  Capex:  Substantial increase for SGL ACF due to tripling p g of carbon fiber capacities p to reflect BMW’s growing demand for carbon fibers and fabrics  Excluding SGL ACF, Group capex to be down significantly due to rigid capex control in light of weak operational development  Free Cash Flow: Significantly negative mainly due to high capex for SGL ACF and cash out for SGL2015 measures  However net debt at year end 2014 considerably below year end 2013 due to capital increase Page 61

| Investor Relations Presentation

* Adjusted for the reclassification of BU Aerostructures

SGL Group in 2015. Business and reporting structure will be aligned g Main changes affecting the organizational structure:  Current number of five business units ((BU)) will be reduced to three  The two separate BUs Graphite & Carbon Electrodes (GCE) and Cathodes & Furnace Linings (CFL) will be combined to form one BU Performance Products (PP)  The BU Graphite Specialties (GS) and the BU Process Technology (PT) will be merged to create a Business i Unit i Graphite hi Materials i l & Systems (GMS)  As before, the BU CF/CM will continue to be reported in the segment Carbon Fibers & Materials (CFM) together with the proportionally consolidated joint arrangements with BMW Group (SGL ACF)  Central functions functions, research and development activities as well as our SGL Excellence efforts will be reported in the segment Corporate

→ Streamlining of organiza on and business processes within the BUs will reduce complexity and create further synergies Page 62

| Investor Relations Presentation

SGL Group in 2015. Organization streamlined to three from five business units

Performance Products (PP)

Graphite Materials & Systems (GMS)

Carbon Fibers & Materials (CFM)

Graphite electrodes Carbon electrodes Cathodes Furnace linings

Graphite specialties Process technology

Carbon fibers Composite materials SGL ACF (51%)

Main JVs - SGL ACF - Brembo SGL - Benteler SGL - etc

Corporate Functions & Service Centers Technology gy & Innovation (T&I) SGL Excellence (SGL X) Business Unit Aerostructures (AS, HITCO) reclassified to discontinued operations as of June 30, 2014 Page 63

| Investor Relations Presentation

Joint Venture Partners

Appendix

Page 64

| Investor Relations Presentation

Global presence.

11 production sites North America

**

Page 65

| Investor Relations Presentation

24 production sites Europe

8 production sites Asia

*

* Site to be closed ** Business Unit Aerostructures reclassified to discontinued operations as of June 30, 2014

Shares in issue and shareholder structure.

Basic shares Securityy Identification Number

723530

ISIN Number

DE0007235301

Cusip Number

784 188 203

Number of Shares ((as at November 30,, 2014))

91,422,180 , ,

Free float

~ 35%

Reported p shareholdings g according g to §§ 21 f. WpHG p SKion GmbH

(Oct 15, 2014)

27.46%

BMW AG

(Oct 15, 2014)

18.44%

Volkswagen o s age AG G

((Apr p 30, 2014) 0 )

9.95%

Voith GmbH

(Sep 01, 2011)

9.14%

Page 66

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Debt market instruments.

Convertible notes (maturity 2016)

Convertible notes (maturity 2018)

Coupon

3.5%

Coupon

2.75%

Principal Amount

€ 190 million

Principal Amount

€ 240 million

Outstanding Amount

€ 134.70 million

Adjusted Conversion Price

€ 40.9598

Adjusted j Conversion Price

€ 27.2959

Conversion Right

5.86 million shares

Conversion Right

4.93 million shares

Issue Date

25 April 2012

Issue Date

30 June 2009

Date of Maturity

25 January 2018

Date of Maturity

30 June 2016

(as at November 30, 2014)

(as at November 30, 2014)

Page 67

| Investor Relations Presentation

((as at November 30,, 2014))

Corporate bond (maturity 2021) Coupon

4.875%

Principal Amount

€ 250 million

Issue Date

12 December 2013

Date of Maturity

15 January 2021

Capital Expenditure by Business Area. Major investment focus in 2013  Additional improvements in production processes at Malaysian plant  Replacement and EHSA in USA and Spain

PP

Capital expenditure and depreciation [in € million] €240m

Depreciation (right hand column) 111

GMS

CFC

 Completion isostatic graphite capacity expansion in Germany, China and Poland  EHSA in France and USA

 New polymerization facility and start of work to convert a spinning line to PAN precursor production in Portugal  Expansion and EHSA in Scotland  Automation at SGL Kümpers (Germany) and infrastructure at Hitco (USA)**

Capex (left hand column)

€154m

€137m*

€139m

25

80

90

23

21

35

39 61

30 66

12

20

29

54 14

2008 2009 Central projects

66

2010

Graphite Materials & Systems

61

14

€132m €95m

46 50 71

21 14

34 84

| Investor Relations Presentation

20 8

2011 2012 2013 Carbon Fibers & Composites Performance Products

* Reported capex of €129.5 million for 2010 includes €7.4 million cash inflow for services rendered by SGL Group. Therefore cash outflow for capex was €136.9 million **Business Unit Aerostructures (AS, HITCO) reclassified to discontinued operations as of June 30, 2014 Page 68

33 83

Financial calendar / contact details.

Financial calendar 2015

Contact

March 18, 2015

Annual Report 2014

SGL CARBON SE

A il 29, April 29 2015

R Report t on th the fi firstt quarter t 2015

April 30, 2015

Annual General Meeting

Soehnleinstrasse 8 65201 Wiesbaden Germany

August 6, 2015

Report on the first half year 2015

Phone Fax

November 5, 2015

Report on the first nine months 2015

[email protected] www.sglgroup.com

Page 69

| Investor Relations Presentation

+49 (0) 611 - 6029 - 103 +49 (0) 611 - 6029 - 101

Important note.

This presentation contains forward looking statements based on the information currently available to us and on our current projections and assumptions. assumptions By nature, nature forward looking statements are associated with known and unknown risks and uncertainties, as a consequence of which actual developments and results can deviate significantly from the assessment published in this presentation. Forward looking statements are not to be understood as guarantees. Rather, future developments and results depend on a number of factors; they entail various risks and unanticipated circumstances and are based on assumptions which may prove to be inaccurate. These risks and uncertainties include, for example, unforeseeable changes in political, economic, legal and business conditions, particularly relating to our main customer industries, such as electric steel production, production to the competitive environment, environment to interest rate and exchange rate fluctuations, to technological developments, and to other risks and unanticipated circumstances. Other risks that may arise in our opinion include price developments, unexpected developments associated with acquisitions and subsidiaries, and unforeseen risks associated with ongoing cost savings programs programs. SGL Group assumes no responsibility in this regard and does not intend to adjust or otherwise update these forward looking statements. Page 70

| Investor Relations Presentation